Exhibit 2.1
AGREEMENT
CONCERNING THE EXCHANGE OF COMMON STOCK
BETWEEN
STRATEGIA CORPORATION
AND
PROPRIETARY INDUSTRIES, INC.
AGREEMENT, made as of the 1st day of December, 2000, by and between
Strategia Corporation, a Kentucky corporation ("SAEA") and Proprietary
Industries, Inc., a corporation organized under the Business Corporations Act
(Alberta) ("PPI"), and joined in by EnerGCorp, Inc., a Florida corporation
("EGCI").
RECITALS
WHEREAS, SAEA desires to acquire from PPI 142,936,749 shares of EGCI
(representing approximately 94% of the issued and outstanding shares of common
stock of EGCI) in exchange for an aggregate of shares of its authorized but
unissued common and preferred shares, and;
WHEREAS, EGCI is joining this Agreement in order to make certain
representations and warranties to induce SAEA to enter this Agreement;
NOW, THEREFORE, in consideration of the above premises, the mutual
promises, covenants, and representations contained herein, THE PARTIES HERETO
AGREE AS FOLLOWS:
ARTICLE I
EXCHANGE OF SHARES
1.1 Issuance of Shares. Subject to all of the terms and conditions of this
Agreement, SAEA agrees at the Closing to issue to PPI 10,000,000 shares of its
authorized but unissued common stock and 134,976 shares of a series of its
authorized but unissued preferred stock (the "Preferred Stock") with terms as
set forth on Exhibit A to this Agreement (collectively, the "Shares"). Promptly
upon execution of this Agreement, SAEA shall take such actions as are necessary
to authorize the creation and issuance of the Preferred Stock in accordance with
this Agreement. In exchange for SAEA's issuance and delivery of the Shares to
PPI, PPI shall transfer to SAEA 142,936,749 shares of common stock of EGCI
representing approximately 94% of the outstanding shares of EGCI (the "EGCI
Stock").
1.2 Exemption From Registration. The parties hereto intend that the
issuance of the Shares by SAEA to PPI shall be exempt from the registration
requirements of the Securities Act of 1933, as amended ("the Act"), pursuant to
section 4(2) of the Act and the rules and regulations promulgated thereunder.
The parties similarly understand that the issuance of the Shares by SAEA to PPI
will not be registered or qualified with, or reviewed by, any state securities
administrator in reliance on similar exemptions. PPI understands and agrees that
the Shares must be held indefinitely by it unless the sale thereof is registered
under the Act and applicable state law, or exemptions from such registrations
are available. Similarly, the parties understand and acknowledge that the
transfer of the EGCI Stock from PPI to SAEA is being consummated in reliance
upon exemptions from the Act, and that the EGCI Stock will constitute restricted
securities, which must be held indefinitely unless the resale thereof is
registered under the Act and applicable state law, or an exemption from such
registration requirements is available.
1.3 Restrictive Legend. Each of the parties understands and agrees that any
and all certificates representing the Shares and the EGCI Stock shall bear the
following legend:
The shares represented by this Certificate have not been registered under
the Securities Act of 1933, as amended, or under any other applicable federal or
state laws or regulations, and may not be transferred unless (i) a registration
statement is in effect under such Act and such other applicable laws or
regulations covering the shares, or (ii) the shares are exempt from such
registration requirements.
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF EGCI and PPI
EGCI and PPI hereby represent and warrant to SAEA that:
2.1 Organization. EGCI is a corporation duly organized, validly existing
and in good standing under the laws of Florida, has all necessary corporate
powers to own its property and to carry on its business as now owned and
operated by it, and is duly qualified to do business and is in good standing in
each of the states where its business requires qualification.
2.2 Capital. The authorized capital stock of the EGCI consists solely of
200,000,000 shares of common stock of $.001 par value per share, of which
149,537,175 shares are issued and outstanding and of which 142,936,749 shares
(approximately 94%) are held by PPI, and 50,000,000 shares of preferred stock of
which no shares are issued or outstanding. PPI has, and at the Closing will
transfer to SAEA, good and marketable (legal and beneficial) title to the EGCI
Stock, free and clear of all liens, pledges, proxies, voting trusts,
encumbrances, security interests, claims, charges, and restrictions whatsoever,
and there are no outstanding purchase agreements, options, warrants, or other
rights of any kind whatsoever entitling any person or entity (collectively, a
"Person") to purchase or acquire an interest in any of the EGCI Stock or
restricting their transfer in accordance with this Agreement. All of the shares
of EGCI Stock have been duly authorized and validly issued, and are fully paid
and nonassessable. None of the shares of EGCI Stock have been issued in
violation of any federal, state or other law pertaining to the issuance of
securities or in violation of any rights, preemptive or otherwise, of any
Person. There are no issued or outstanding subscriptions, options, rights,
warrants, debentures, instruments, convertible securities, or other agreements
or commitments obligating EGCI to issue or to transfer from treasury any
additional shares of its capital stock except as described in Exhibit B.
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2.3 Financial Statements. As used in this Agreement, the term:
"Current Financial Statements" shall mean the PPI's and EGCI's respective
most recent unaudited balance sheet, prepared in the ordinary course of
business, available at the date of this Agreement (the "Current Balance
Sheets"), and the most recent related unaudited statement of operations,
prepared in the ordinary course of business, available at the date of this
Agreement (the "Current Income Statements"), copies of which are attached hereto
as Exhibit C. "Financial Statements" shall mean the audited balance sheet, the
audited statements of operations, comprehensive income, stockholders' equity and
cash flows of the PPI and EGCI, respectively as of its fiscal years ended 1997,
1998 and 1999, respectively, copies of which are attached hereto as Exhibit C.
PPI has delivered to SAEA, and there are attached hereto as Exhibit C, true
and complete copies of the Current Financial Statements and the Financial
Statements. The Financial Statements for PPI have been examined and reported on
as described in Exhibit C by ▇▇▇▇▇▇ & Company Chartered Accountants. The
monetary amounts in the PPI Current Financial Statements and Financial
Statements are stated in Canadian dollars. In the EGCI Current Financial
Statements and Financial Statements, the monetary amounts are stated in United
States dollars. The Financial Statements (a) present fairly, accurately and
correctly in all material respects, the results of operation of the EGCI and
PPI, respectively, for the periods covered thereby and the financial condition
of the PPI or EGCI as at the dates thereof; and (b) were prepared in conformity
with generally accepted accounting principles of Canada for PPI and the United
States for EGCI, applied on a basis consistent with prior periods. The Current
Financial Statements have been prepared in the ordinary course of business in a
manner consistent with the preparation by PPI or EGCI of such statements for
prior periods. The Current Financial Statements present fairly, accurately and
correctly in all material respects the results of operation of PPI or EGCI for
the periods covered thereby and the financial condition of PPI or EGCI as at the
dates thereof, and the Current Financial Statements accurately reflect in all
material respects the books and records of account of PPI or EGCI.
2.4 Authority. The Board of Directors of EGCI and PPI have authorized the
execution of this Agreement and the consummation of transactions contemplated
herein, and EGCI and PPI have full power and authority to execute, deliver, and
perform this Agreement. This Agreement is a legal, valid and binding obligation
of EGCI and PPI, and is enforceable against them in accordance with its terms
and conditions.
2.5 Ability to Carry Out Obligations. The execution and delivery of this
Agreement by EGCI and PPI and the performance of their respective obligations
hereunder in the time and in the manner contemplated will not cause, constitute
or conflict with or result in (a) any breach or violation of any of the
provisions or constitute a default under any material license, indenture,
mortgage, charter, instrument, articles of incorporation, bylaws, or other
agreement or instrument of PPI or EGCI or to which either is a party, or by
which either may be bound, (b) an event that would permit any party to any
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material agreement or instrument to terminate it or to accelerate the maturity
of any material indebtedness or other obligation of PPI or EGCI, or (c) any
event that would result in the creation or imposition of any material lien,
charge, or encumbrance on any asset of PPI or EGCI.
2.6 Absence of Material Change. Except as set forth on Exhibit D:
(a) Since the date of the most recent Financial Statement, the
business and affairs of PPI and EGCI have been conducted only in the ordinary
course.
(b) Since the date of the most recent Financial Statement, (i) there
has been no change in the condition (financial or otherwise), assets,
liabilities, earnings, business, operations, affairs or prospects of PPI or
EGCI, other than minor changes in the ordinary course of business, none of which
either singly or in the aggregate has been materially adverse; and (ii) there
has been no damage, destruction, loss or other occurrence or development
(whether or not insured against), that either singly or in the aggregate
materially adversely affects (and neither PPI or EGCI knows, or has any
reasonable grounds to know, of any threatened occurrence or development that
could materially adversely affect) the assets, liabilities, earnings, business,
operations, affairs or prospects of PPI or EGCI.
(c) Since the date of the most recent Financial Statement, neither PPI
nor EGCI has (i) declared or paid any dividends or made any other distribution
on or in respect of, or directly or indirectly purchased, retired, redeemed, or
otherwise acquired, any shares of PPI or EGCI's stock; or (ii) changed any
accounting practice followed or employed in preparing the Financial Statements
or the Current Financial Statements.
2.7 Litigation and Pending Proceedings. Except as set forth on Exhibit D,
there are no material claims of any kind or any actions, suits, proceedings,
arbitrations or investigations pending or threatened in any court or before any
governmental agency or instrumentality or arbitration panel or otherwise
against, by or affecting PPI or EGCI, or either of their business, prospects or
condition (financial or otherwise), or any of either of their properties or
assets, or that would prevent the performance of this Agreement or any of the
transactions contemplated hereby, or that declare the same unlawful or cause the
rescission thereof. PPI and EGCI have complied with and are not in default in
any respect under (and has not been charged or threatened with, and is not under
an investigation with respect to, any charge concerning any violation of any
provision of) any federal, state or local law, regulation, ordinance, rule or
order (whether executive, judicial, legislative or administrative), or any
order, writ, injunction or decree of any court, agency or instrumentality.
2.8 U.S. Federal Tax Status. EGCI is the parent of a consolidated group of
corporations for the purposes of the U.S. Federal Income Taxes and EGCI has
filed and will file a consolidated U.S. Federal Income Tax return for its group
for the previous and the current U.S. Federal Income Tax Year.
2.9 Full Disclosure. No statement, Exhibit, certificate, information,
representation or warranty of PPI or EGCI contained in this Agreement, or
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furnished by or on behalf of either of them to SAEA or any of its agents
pursuant hereto or thereto, or in connection with the transactions contemplated
hereby, contains or will contain any untrue statement of a material fact, or
omits or will omit to state a material fact necessary in order to make a
statement contained herein or therein not misleading. All representations and
warranties of PPI and EGCI contained in this Agreement are true and complete as
of the date hereof, and will be true and complete as of the Closing Date.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF SAEA
SAEA hereby represents and warrants to EGCI that, except as set forth on an
Exhibit to this Agreement:
3.1 Organization. SAEA is a corporation duly organized, validly existing
and in good standing under the laws of Kentucky, has all necessary corporate
powers to own its property and to carry on its business as now owned and
operated by it, and is duly qualified to do business and is in good standing in
each of the states where its business requires qualification.
3.2 Capital. The authorized capital stock of SAEA consists of 2,000,000
shares of preferred stock of which none is issued and fifteen million
(15,000,000) shares of common stock of which 4,483,802 shares are currently
issued and outstanding; all of such shares were duly authorized and validly
issued, are fully paid and nonassessable and were not issued in violation of the
preemptive or other rights of any Person. Further, the issuance of such shares
complied in all respects with applicable securities laws. SAEA further
represents that, except as set forth on Exhibit E, there are no other issued and
outstanding subscriptions, warrants, options, debentures, instruments,
convertible securities, or other agreements or commitments obligating SAEA to
issue or to transfer from treasury any additional shares of its capital stock.
When issued to PPI in exchange for the EGCI Stock, the Shares will be duly and
validly issued, fully paid and nonassessable, and will not have been issued in
violation of any preemptive or other rights of any Person.
3.3 Financial Statements. The audited financial statements of SAEA are
attached hereto as Exhibit F. The financial statements have been prepared in
accordance with generally accepted accounting principles and practices
consistently followed by SAEA throughout the period indicated, and present
fairly, accurately and correctly in all material respects, the financial
position of SAEA as of the date of the balance sheet included in the financial
statements, and the results of operations for the period indicated.
3.4 Authority. The Board of Directors of SAEA has authorized the execution
of this Agreement and the consummation of transactions contemplated herein, and
SAEA has full power and authority to execute, deliver, and perform this
Agreement and this Agreement is a legal, valid and binding obligation of SAEA,
and is enforceable in accordance with its terms and conditions. No action on the
part of the shareholders of SAEA is required for the consummation of the
transactions contemplated hereby.
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3.5 Ability to Carry Out Obligations. The execution and delivery of this
Agreement by SAEA and the performance by SAEA of its obligations hereunder in
the time and in the manner contemplated will not cause, constitute or conflict
with or result in (a) any breach or violation of any of the provisions or
constitute a default under any license, indenture, mortgage, charter,
instrument, articles of incorporation, bylaws, or other agreement or instrument
to which SAEA is a party, or by which it may be bound, nor will any consents or
authorizations of any party other than those hereto be required, (b) an event
that would permit any party to any agreement or instrument to terminate it or to
accelerate the maturity of any indebtedness or other obligation of SAEA, or (c)
any event that would result in the creation or imposition of any lien, charge,
or encumbrance on any asset of SAEA.
3.6 Full Disclosure. None of the representations and warranties made by
SAEA herein, or in any exhibit, certificate or memorandum furnished or to be
furnished by SAEA, or on its behalf, contains or will contain any untrue
statement of material fact, or omit any material fact the omission of which
would be misleading.
3.6 Good Title. Other than as described in Exhibit E, SAEA has good and
marketable title to all of its property free and clear of any liens, claims and
encumbrances of any nature, form or description.
3.7 Absence of Material Change. Except as set forth on Exhibit E:
(a) Since the date of the most recent financial statements referenced
in Section 3.3, the business and affairs of SAEA have been conducted only in the
ordinary course, consistent with its current business plan.
(b) Since the date of the most recent financial statements referenced
in Section 3.3, (i) there has been no change in the condition (financial or
otherwise), assets, liabilities, earnings, business, operations, affairs or
prospects of SAEA, other than minor changes in the ordinary course of business,
none of which either singly or in the aggregate has been materially adverse; and
(ii) there has been no damage, destruction, loss or other occurrence or
development (whether or not insured against), which either singly or in the
aggregate materially adversely affects (and SAEA does not know, or have any
reasonable grounds to know, of any threatened occurrence or development that
could materially adversely affect) the assets, liabilities, earnings, business,
operations, affairs or prospects of SAEA.
(c) Since the date of the most recent financial statements referenced
in Section 3.3, SAEA has not (i) declared or paid any dividends or made any
other distribution on or in respect of its shares except as described in Exhibit
G; or (ii) changed any accounting practice.
3.8 Litigation and Pending Proceedings. Except as set forth on Exhibit H,
there are no claims of any kind or any actions, suits, proceedings, arbitrations
or investigations pending or threatened in any court or before any governmental
agency or instrumentality or arbitration panel or otherwise against, by or
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affecting SAEA or its business, prospects or condition (financial or otherwise),
or its properties or assets, or that would prevent the performance of this
Agreement or any of the transactions contemplated hereby, or that declare the
same unlawful or cause the rescission thereof. SAEA has complied with and is not
in default in any respect under (and has not been charged or threatened with,
and is not under an investigation with respect to, any charge concerning any
violation of any provision of) any federal, state or local law, regulation,
ordinance, rule or order (whether executive, judicial, legislative or
administrative), or any order, writ, injunction or decree of any court, agency
or instrumentality.
3.9 Tax Matters. SAEA has filed with the appropriate governmental agencies
all federal, state and local income, franchise, excise, real and personal
property and other tax returns and reports that are required to be filed. SAEA
has paid or withheld all taxes, assessments and other governmental charges upon
it or its properties, assets, income, receipts, payrolls, transactions, capital
net worth or franchises, other than those currently payable without penalty or
interest and as to which adequate reserves have been set aside on the books of
SAEA. No tax return of SAEA is currently under examination by the Internal
Revenue Service or any other taxing authority, nor is the Internal Revenue
Service or any other taxing authority now asserting or threatening to assert
against SAEA any adjustment, deficiency or claim for additional taxes or
interest thereon or penalties in connection therewith.
3.10 Employment Issues. There are no employment contracts or agreements, or
understandings of any kind or nature which give rise to a claim of a right to
employment or special benefits or compensation between SAEA and any person,
including without limitation, its officers, directors, shareholders and
employees. SAEA does not maintain any employee bonus, pension, profit-sharing,
stock option, incentive, deferred compensation, hospitalization, medical,
insurance or other employee benefit plan.
ARTICLE IV
COVENANTS
4.1 Investigative Rights. From the date of this Agreement until the Closing
date, each party shall provide the other full access during normal business
hours to all such party's properties, books, contracts, commitments, and records
for the purpose of examining same.
4.2 Conduct of Business. Prior to the Closing, SAEA, PPI and EGCI shall
each conduct its business strictly in the normal and ordinary course and shall
not sell, pledge or assign any assets without the prior written consent of
either party. Neither SAEA or EGCI shall amend its articles of incorporation or
Bylaws (other than the amendment of SAEA's articles of incorporation to create
the series of Preferred Stock), declare or pay dividends or other distributions
(other than that declared by SAEA on October 6, 2000 and an additional
distribution by SAEA with a record date before the Closing in an amount to
reduce the net value of SAEA to approximately $0.00), redeem or sell (or enter
into an agreement or commitment to redeem or sell) stock or other securities,
incur additional or newly-funded liabilities, acquire or dispose of fixed assets
or settle or discharge any balance sheet receivable other than in the normal
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course of business. PPI and EGCI hereby acknowledge and agree that any funds
held by SAEA identified on Exhibit X are intended to be distributed to those
persons who were shareholders of SAEA prior to consummation of the exchange
contemplated herein. Therefore, PPI and EGCI agree that such distributions
(whether they take place before or after this Agreement is executed), shall have
a record date necessary to effectuate the foregoing intent.
4.4 Officers. Effective at the Closing, all of the officers of SAEA shall
resign.
4.5 Insurance. EGCI and PPI shall cause and procure that SAEA shall
maintain in full force and effect any and all existing insurance policies (or
their equivalent) (including, without limitation, directors and officers
insurance) in place as of the Closing for a continuous five (5) year period
thereafter (or longer to the extent prepaid and fully expensed prior to the
Closing).
4.6 Other Actions. Prior to or concurrently with the Closing, the parties
shall take the actions described in the Closing Memorandum attached hereto as
Schedule 4.5 and incorporated herein by this reference.
4.7 Noncircumvention; Rescission. SAEA shall, and it shall cause its
officers and directors to, take no action (or omit to take any action) that
would tend to delay, hinder, prohibit, circumvent or otherwise cause PPI or EGCI
not to obtain the benefits contemplated by this Agreement. The parties hereby
acknowledge and agree that PPI would not obtain or realize the benefits intended
to be derived from the transactions contemplated hereby if either (a) SAEA's
shareholders fail to approve the amendment (the "Amendment") to SAEA's articles
of incorporation increasing the authorized number of shares SAEA may issue,
which approval is necessary to convert the Preferred Stock, or (b) PPI's ability
to vote the Shares is restricted or otherwise limited in any material respect.
Therefore, the parties agree that PPI shall have the absolute right to rescind
if either of the foregoing events occurs. This right to rescind shall expire
upon the adoption of the Amendment by the SAEA shareholders or six months after
the Closing Date, whichever occurs first.
4.8 Amendment. PPI shall use its best efforts to cause the Amendment to be
adopted as soon as possible after the Closing. Such efforts shall include,
without limitation, taking all steps necessary to cause a shareholders meeting
of SAEA to be held promptly after the Closing at which the Amendment will be
voted on and voting or causing to be voted all of the Shares in favor of the
Amendment at that meeting. Failure to comply with this covenant shall void the
rescission right set forth in Section 4.7.
ARTICLE V
CONDITIONS PRECEDENT TO SAEA'S PERFORMANCE
SAEA's obligations hereunder shall be subject to the satisfaction, at or
before the Closing, of all the conditions set forth in this Article V. SAEA may
waive any of these conditions in whole or in part without prior notice; provided
however, that no such waiver of a condition shall constitute a waiver by SAEA of
any other condition of or any of SAEA's other rights or remedies, at law or in
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equity, if PPI or EGCI shall be in default of any of their representations,
warranties, or covenants under this Agreement:
5.1 PPI and EGCI Performance. EGCI and PPI shall have performed, satisfied
and complied with all covenants, agreements, and conditions required by this
Agreement to be performed or complied with by it, on or before the Closing Date.
5.2 Accuracy of Representations. Except as otherwise permitted by this
Agreement, all representations and warranties by PPI and EGCI in this Agreement
or in any written statement that shall be delivered to SAEA by PPI and EGCI
under this Agreement shall be true and accurate on and as of the Closing Date as
though made at that time.
5.3 Financial Condition of EGCI. On the Closing Date, the assets and
liabilities of EGCI shall not be materially different than the amounts shown on
its balance sheet included hereto except for changes in the ordinary course of
business.
5.4 Financial Condition of SAEA. On the Closing Date, the assets of SAEA
net of its liabilities shall be approximately zero ($0.00) subject only to the
terms of the October 6, 2000 or any other cash distribution announced prior to
Closing.
ARTICLE VI
CONDITIONS PRECEDENT TO PPI AND EGCI'S PERFORMANCE
PPI and EGCI's obligations hereunder shall be subject to the satisfaction,
at or before the Closing, of all the conditions set forth in this Article VI.
EGCI and PPI may waive any of these conditions in whole or in part without prior
notice; provided however, that no such waiver of a condition shall constitute a
waiver by PPI or EGCI of any other condition of or any of PPI or EGCI's other
rights or remedies, at law or in equity, if SAEA shall be in default of any of
their representations, warranties, or covenants under this Agreement.
6.1 SAEA Performance. SAEA shall have performed, satisfied and complied
with all covenants, agreements, and conditions required by this Agreement to be
performed or complied with by it, on or before the Closing Date.
6.2 Trading of SAEA shares. SAEA shares of common stock shall be eligible
for trading on the NASD OTCBB upon completion of the transactions contemplated
by this Agreement.
6.3 Accuracy of Representations. Except as otherwise permitted by this
Agreement, all representations and warranties by SAEA in this Agreement or in
any written statement that shall be delivered to PPI or EGCI by SAEA under this
Agreement shall be true and accurate on and as of the Closing Date as though
made at that time.
6.4 Financial Condition of SAEA. On the Closing Date, the assets and
liabilities of SAEA shall not be materially different from those shown on
Exhibit F except as set forth in Exhibit E.
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ARTICLE VII
CLOSING
7.1 Closing. The closing of this transaction (the "Closing") shall take
place at the offices of the law firm of ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ LLC in Louisville,
Kentucky on a December 1, 2000 unless another date is agreed to between PPI and
SAEA (the "Closing Date").
At the Closing the parties shall deliver the following in form acceptable
to counsel to the parties or as set forth herein:
By SAEA:
A. The Shares represented by stock certificates issued in amounts called
for by and described in paragraph 1.1 above.
B. Written resignations of all officers effective upon closing.
C. A certificate of the President and Secretary of SAEA in form reasonably
acceptable to PPI to the effect that the conditions to the Closing set forth in
Article VI of this Agreement have been met or stating with particularity in
which way they have not been met.
D. Such other documents as PPI and EGCI may reasonably request to effect
the transactions contemplated by this Agreement.
By PPI:
A. Stock certificates endorsed to SAEA representing 142,060,316 shares of
EGCI common stock representing approximately 94% of the issued and outstanding
stock of EGCI.
B. A certificate of the President and Secretary of PPI and EGCI in form
reasonably acceptable to SAEA to the effect that the conditions to the Closing
set forth in Article V of this Agreement have been met or stating with
particularity in which way they have not been met.
C. Such other documents as SAEA may reasonably request to effect the
transactions contemplated by this Agreement.
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ARTICLE VIII
REMEDIES
8.1 Indemnification by PPI and EGCI. PPI and EGCI shall defend and hold
SAEA's shareholders, officers and directors (collectively, the "SAEA Indemnified
Parties") harmless from and in respect of, and shall pay to the SAEA Indemnified
Parties the full amount of, any and all claims, demands, losses, costs,
expenses, obligations, liabilities, damages, recoveries, and deficiencies,
including interest, penalties, and reasonable attorney's fees resulting to any
of them which, either directly or indirectly, arise out of, result from or
relate to any breach of, or failure by PPI or EGCI to perform, any of their
representations, warranties, covenants and agreements in this Agreement or in
any exhibit or other instrument furnished or to be furnished by PPI or EGCI
under this Agreement.
8.2 Indemnification by SAEA. SAEA shall defend and hold PPI and EGCI and
their respective shareholders, officers and directors (collectively, the "PPI
Indemnified Parties") harmless from and in respect of, and shall pay to the PPI
Indemnified Parties the full amount of, any and all claims, demands, losses,
costs, expenses, obligations, liabilities, damages, recoveries, and
deficiencies, including interest, penalties, and reasonable attorney's fees
resulting to any of them which, either directly or indirectly, arise out of,
result from or relate to any breach of, or failure by SAEA to perform, any of
their representations, warranties, covenants and agreements in this Agreement or
in any exhibit or other instrument furnished or to be furnished by SAEA under
this Agreement.
8.3 Legal Action and Costs. If any legal action or any arbitration or other
proceeding is brought for the enforcement of this Agreement, or because of an
alleged dispute, breach, default, or misrepresentation in connection with any of
the provisions of this agreement, the successful or prevailing party or parties
shall be entitled to recover reasonable attorney's fees and other costs incurred
in that action or proceeding, in addition to any other relief to which it or
they may be entitled.
8.4 Termination. In addition to the other remedies, any of the parties
hereto may terminate this Agreement, without liability:
(i) upon the failure of any condition not otherwise waived by the
parties; or
(ii) upon mutual consent of the respective boards of directors of SAEA
and PPI.
ARTICLE IX
MISCELLANEOUS
9.1 Captions and Headings. The Article and paragraph headings throughout
this Agreement are for convenience and reference only, and shall in no way be
deemed to define, limit, or add to the meaning of any provision of this
Agreement.
9.2 No Oral Change. This Agreement and any provisions hereof, may not be
waived, changed, modified or discharged orally, but it can be changed by an
agreement in writing signed by the party against whom enforcement of any waiver,
change, modification or, discharge is sought.
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9.3 Non-Waiver. Except as other wise expressly provided herein, no waiver
of any covenant, condition, or provision of this Agreement shall be deemed to
have been made unless expressly in writing and signed by the party against whom
such waiver is charged.
9.4 Time of Essence. Time is of the essence of this Agreement and each and
every part hereof.
9.5 Entire Agreement. This Agreement contains the entire agreement and
understanding between the parties with respect to the subject matter hereto and
supersedes all prior agreements and understandings and merges any all such prior
discussions and/or agreements herein.
9.6 Choice of Law. This Agreement and its application shall be governed by
the laws of the State of Kentucky. Each party agrees that any action brought in
connection with this Agreement against another shall be filed and heard in
Jefferson County, Kentucky, and each party hereby submits to the jurisdiction of
the Circuit Court of Jefferson County, Kentucky, and the U.S. District Court for
the Western District of Kentucky, Louisville Division.
9.7 Counterparts. This Agreement may be executed simultaneously in one or
more counterparts, each of which shall be deemed an original but all of which
shall constitute one and the same instrument.
9.8 Notices. All notices , requests, demands, and other communications
under this Agreement shall be in writing and shall be deemed to have been duly
given on the date of receipt if mailed to the party to whom notice is to be
given, by first class mail, registered or certified, return receipt requested,
postage prepaid, and properly addressed as follows:
SAEA: c/o ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ LLC
ATTN: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
PPI or EGCI: ▇/▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇, ▇▇▇ ▇▇▇ ▇▇▇▇▇▇ ▇.▇.,
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇ ▇▇▇
9.9 Binding Effect. This Agreement shall inure to the benefit of and be
binding upon the permitted successors and assigns of each of the parties to this
Agreement. This Agreement may not be assigned by any party without the prior
written consent of the other parties hereto. The SAEA shareholders immediately
prior to the Closing shall be third party beneficiaries to this Agreement.
9.10 Effect of Closing. All representations, warranties, covenants, and
agreements of the parties contained in this Agreement, or in any instrument,
certificate, opinion, or other writing provided for in it, shall survive the
Closing of this Agreement.
12
9.11 Expenses. Each party will pay its own legal, accounting and any other
out of pocket expenses reasonably incurred in connection with this transaction,
whether or not the transaction contemplated hereby is consummated. Without
limiting in any way the generality of the foregoing, PPI and EGCI shall be
solely responsible for paying any and all fees, costs and all other charges
imposed by ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ and Optimum Investments, Inc. in connection with
this Agreement and the transactions contemplated hereby.
9.12 Facsimile Signatures as Originals. Original signatures transmitted by
facsimile communication shall constitute originals for the purpose of validly
executing this Agreement.
AGREED TO AND ACCEPTED as of the date first above written.
STRATEGIA CORPORATION
By /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
----------------------------
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Chairman
PROPRIETARY INDUSTRIES, INC., Shareholder
By /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
----------------------------
▇▇▇▇▇ ▇. ▇▇▇▇▇▇, President
ENERGCORP, INC.
By /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
----------------------------
▇▇▇▇▇ ▇. ▇▇▇▇▇▇, President
